Energean plc has taken Final Investment Decision (“FID”) for the Katlan development project in Israel, according to the company's release.
As previously communicated, the Katlan area will be developed in a phased approach through a subsea tieback to the existing Energean Power FPSO. The development will extend the production plateau from the FPSO with volumes that do not incur seller royalties or carry export restrictions.
First gas is planned for H1 2027. The EPCI contract for the subsea scope has been awarded to TechnipFMC and includes four-well-slot tieback capacity to a single large ~30 kilometre production line, which can be used by future Katlan area phases.
Capital expenditure is expected to be approximately US$1.2 billion, which includes the aforementioned subsea infrastructure, an upgrade of the FPSO topsides related to MEG treatment, injection and storage (which will benefit all future subsea tie-back developments) and, drilling the first two production wells of the development (Athena and Zeus; 170 mmboe (includes 26 bcm of gas)2 of 2P reserves).
The Ministry of Energy and Infrastructure has granted the associated 30-year lease for the Katlan area including a 20-year extension option. The Ministry has also ratified the Hermes discovery in the newly named Drakon area (Block 31) made as part of the drilling campaign in 2022.